Rexnord Q4 Profit Rises - Update

(RTTNews) - Industrial components maker Rexnord Corp. (RXN), Tuesday reported an increase in profit for the fourth quarter, driven largely by revenue growth at both divisions. Earnings for the quarter came in ahead of analysts' estimates, but revenues fell short of expectations.

Rexnord has two divisions, Process and Motion Control business that focuses on industrial components like gears, couplings, industrial chain and bearings, while the unit Water Management focuses on valves, faucets and drainage equipments.

Sales from process and motion control business rose to $358.7 million from $340.2 million last year, while revenues from water management business rose to $211.0 million from $200.1 million a year ago.

Net sales for the quarter increased 5 percent to $569.7 million from $540.3 million last year. Seven analysts polled by Thomson Reuters had a consensus revenue estimate of $582.77 million for the quarter.

Milwaukee, Wisconsin-based Rexnord's fourth-quarter profit rose to $40.0 million or $0.39 per share from $23.9 million or $0.24 per share last year.

Adjusted earning for the quarter rose to $0.50 per share from $0.32 per share last year. On average, seven analysts expected earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

"We're pleased with our fourth quarter results in light of some challenging market conditions during the quarter," Chief Executive Todd Adams said. "Despite the drag from unusually adverse winter weather and the impact of project shipment timing in Water Management, we achieved our adjusted EPS guidance for the fourth quarter and fiscal year."

Looking forward to the first quarter, the company expects adjusted earnings of $0.24 to $0.26 per share and sales of $500 million to $510 million. Analysts currently expect earnings of $0.34 per share on revenues of $555.55 million for the quarter.

For fiscal year 2015, Rexnord expects adjusted earnings of $1.60 to $1.70 per share. Street currently expects earnings of $1.69 per share.

RXN closed Wednesday's trading at $26.60, down $0.32 or 1.19%, on the NYSE. The stock, however, gained $0.15 or 0.56% in after-hours trade.